This concept can even be taken further - rather than testing just a name, use AdWords to test your entire product before even building it.
For example, if you are thinking of opening an online business selling widgets, you can build a test website and advertise it using AdWords. Provide a fake checkout process, but rather than processing credit cards, just inform your users that your product is not yet available (at a point in the workflow where it's clear they intend to pay already). Then, with a quick calculation on the data, you have a rough idea of how profitable your business will be upon launch.
Obviously, it's not a perfect model, but still a very nice way to gather market data for cheap before you invest the time and money to build anything.
For example, if you are thinking of opening an online business selling widgets, you can build a test website and advertise it using AdWords. Provide a fake checkout process, but rather than processing credit cards, just inform your users that your product is not yet available (at a point in the workflow where it's clear they intend to pay already). Then, with a quick calculation on the data, you have a rough idea of how profitable your business will be upon launch.
Obviously, it's not a perfect model, but still a very nice way to gather market data for cheap before you invest the time and money to build anything.